Pan Electronics first-half loss widens to Rs 92.06 lakh

Pan Electronics (India) Limited reported an unaudited net loss of Rs 92.06 lakh for the half year ended September 30, 2026, widening from Rs 86.78 lakh a year earlier, as revenue from operations fell to Rs 103.52 lakh from Rs 235.90 lakh. The filing was approved by the board on November 13, 2026.

Why did Pan Electronics' first-half loss widen?

Pan Electronics' first-half loss widened because the Rs 132.38 lakh fall in revenue from operations exceeded the Rs 117.24 lakh reduction in total expenses. Total income declined to Rs 103.57 lakh in the half year ended September 30, 2026, from Rs 236.10 lakh in the corresponding 2025 period, while expenses fell to Rs 195.64 lakh from Rs 312.88 lakh.

Material costs decreased to Rs 61.78 lakh from Rs 133.25 lakh, employee-benefit expense fell to Rs 27.71 lakh from Rs 51.99 lakh, and other expenses declined to Rs 49.84 lakh from Rs 83.95 lakh. Depreciation and amortisation also fell, to Rs 53.67 lakh from Rs 79.91 lakh, but the resulting loss before tax was Rs 92.06 lakh compared with Rs 86.78 lakh a year earlier.

Pan Electronics recorded no exceptional items, extraordinary items or tax expense for the six months ended September 30, 2026. Consequently, loss before tax, net loss after tax and total comprehensive loss were each Rs 92.06 lakh, while the corresponding figures for the first half of 2025 were each a loss of Rs 86.78 lakh.

How did Pan Electronics perform in the September quarter?

Pan Electronics reported a Rs 50.81 lakh net loss for the quarter ended September 30, 2026, narrower than the Rs 81.20 lakh loss in the September 2025 quarter. Revenue from operations declined to Rs 24.60 lakh from Rs 39.74 lakh year on year, while total expenses reduced to Rs 75.42 lakh from Rs 121.01 lakh.

The September quarter was weaker than the immediately preceding June 2026 quarter in both revenue and loss. Revenue from operations was Rs 78.92 lakh in the June quarter compared with Rs 24.60 lakh in the September quarter, while the loss increased from Rs 41.25 lakh to Rs 50.81 lakh as total income fell from Rs 78.97 lakh to Rs 24.60 lakh.

September-quarter material consumption was Rs 14.48 lakh, employee-benefit expense was Rs 15.58 lakh and depreciation was Rs 26.93 lakh. Other expenses were Rs 23.57 lakh, while changes in inventories of work-in-progress and finished goods reduced expenses by Rs 5.14 lakh; the quarter recorded no finance cost, against Rs 6.06 lakh in the year-earlier quarter.

Basic and diluted loss per share was Rs 1.27 for the September 2026 quarter, compared with Rs 1.03 in the June 2026 quarter. For the six months ended September 30, 2026, basic and diluted loss per share was Rs 0.23, and paid-up equity share capital remained Rs 4 crore, with a face value of Rs 10 per share.

What do Pan Electronics' cash flow and balance-sheet figures show?

Pan Electronics reported net cash flow from operating activities of negative Rs 70.23 lakh for April to September 2026. The cash-flow statement starts with a Rs 92.06 lakh loss before extraordinary items and includes depreciation of Rs 53.67 lakh and interest income of Rs 0.05 lakh, reporting an operating loss before working-capital changes of Rs 38.44 lakh.

The statement records a Rs 15.90 lakh decrease in other current liabilities, a Rs 36.04 lakh decrease in trade receivables, a Rs 2.27 lakh decrease in inventories and a Rs 9.87 lakh movement in current assets, loans and advances. It reports cash generated from operations of negative Rs 70.23 lakh, with no income tax paid during the April-to-September period.

Cash and cash equivalents were Rs 10.53 lakh at September 30, 2026, down Rs 3.33 lakh from Rs 13.86 lakh at April 1, 2026. The cash-flow statement also reports Rs 32.05 lakh for investment in fixed deposits and Rs 34.79 lakh in proceeds from other long-term liabilities, alongside Rs 0.05 lakh of interest income under financing activities.

Total assets were Rs 10.11 crore at September 30, 2026, compared with Rs 11.48 crore at March 31, 2026. Property, plant and equipment decreased to Rs 4.40 crore from Rs 4.93 crore, while inventories declined to Rs 1.56 crore from Rs 1.58 crore and trade receivables fell to Rs 1.31 crore from Rs 1.67 crore.

How did Pan Electronics' liabilities and equity change?

Pan Electronics reported non-current borrowings of Rs 39.18 crore at September 30, 2026, compared with Rs 38.81 crore at March 31, 2026 and Rs 36.47 crore a year earlier. The balance sheet also showed current trade payables of Rs 24.08 lakh, down from Rs 88.04 lakh at March 31, 2026.

Other equity was negative Rs 33.21 crore at September 30, 2026, compared with negative Rs 32.49 crore at March 31, 2026. Equity share capital was unchanged at Rs 4 crore at both dates, while the balance-sheet total reduced by Rs 1.37 crore over the six months to September 30, 2026.

The filing identifies non-current borrowings of Rs 39.18 crore as the largest disclosed liability line at September 30, 2026. It also records Rs 9.77 lakh of other current liabilities, compared with Rs 25.67 lakh at March 31, 2026, and does not provide a maturity schedule for borrowings.

Pan Electronics said it does not have more than one reportable business segment under Indian Accounting Standard 108, which covers operating segments. The results therefore provide no segment-level revenue, expense or profit data for the Rs 103.52 lakh of first-half revenue from operations.

What did the review report say about Pan Electronics' results?

Pan Electronics' unaudited September 2026 results were reviewed by S K S V M & Co, Chartered Accountants, which stated that nothing had come to its attention to indicate the statement was not prepared in accordance with applicable accounting principles or disclosure requirements. The report is dated November 13, 2026, the same date the board approved the results.

The reviewer said its work was conducted under Standard on Review Engagements 2410, covering a review of interim financial information by an entity's independent auditor. It noted that a review is substantially narrower in scope than an audit and, accordingly, does not provide an audit opinion.

The financial statements were prepared under Indian Accounting Standard 34, Interim Financial Reporting, according to the review report. The results were also stated to have been reviewed by the audit committee before board approval on November 13, 2026.

Conclusion

Pan Electronics' first-half figures show that reduced material, employee and other expenses did not offset the larger decline in revenue. Revenue from operations fell by Rs 132.38 lakh year on year, leaving a Rs 92.06 lakh net loss, while the September-quarter loss was lower than a year earlier but higher than the June 2026 quarter's Rs 41.25 lakh loss.

The filing discloses no management target, turnaround plan or scheduled operational event after the November 13, 2026 approval. The unresolved matters to watch in subsequent disclosures are whether revenue recovers from Rs 24.60 lakh in the September quarter and whether the negative Rs 70.23 lakh first-half operating cash flow changes.